Alan Joyce, Qantas chief executive has spoken publicly about the financial disaster that Qantas are experiencing due to the volcanic ash cloud in Europe and whether they can rise like the Phoenix from the ashes.

It came as Joyce revealed the carrier could soon be in a position to be the lead player in merger discussions.

Joyce told a briefing in Sydney yesterday that the crisis in Europe is costing Qantas between $1.5 million-$2m per day.  “The large bulk of those costs were incurred in accommodating and looking after our passengers, which amount to $700,000 a day,” he said.

Joyce said he did not expect these costs to impact earning forecasts.  The airline has made requests to London and Frankfurt airports for additional slots as they try to clear the backlog.   He also stated that Qantas would not be increasing their airfares as a consequence of the disruptions.

It's a very competitive market.  There will be a lot of carriers trying to put on extra services, including Qantas, to try and accommodate the demand.  ” Joyce said that flights departing for Europe today would be taking extra fuel on board to make sure they have enough fuel for a range of diversion possibilities.

Boeing 747s were being favoured over A380s as they can be diverted to more airports.  Earlier, Joyce told a luncheon that consolidation “has to occur” in the industry.  “Qantas is in a position where it can participate in that when it occurs,” Joyce said.

“I think that Qantas could use its balance sheet strength and financial strength to take the lead once there are regulatory changes.”